pers update ndus hr council tuesday september 13, 2011

PERS UPDATENDUS HR Council

TuesdaySeptember 13, 2011

HIGH DEDUCTIBLE HEALTH PLAN/ HEALTH SAVINGS ACCOUNT (HDHP/HSA)

HDHP Differences

• This will be a Comprehensive Deductible and Coinsurance plan.

• There are no Copayments under this plan. • Deductible will apply first dollar since there is no copay

structure on Prescriptions.• Because this is a Comprehensive HDHP a Member can

exceed the $1500 Individual Deductible/Coinsurance.

* includes the Basic Plan

Restricted and/or Confidential

Deductible

PLAN INDIVIDUAL FAMILY

PPO $ 1500 ($400) $ 3,000 ($1,200)

BASIC $ 1,500($400) $ 3,000 ($1,500)


Coinsurance Maximums


PPO80/20 %

$ 1500 (750) $ 3,000 (1,500)

BASIC75/25 %

$ 2,000 (1,250) $ 4,000 (2,500)


Total Out-of-Pocket Maximum


PPO $ 3,000 (1,150) $ 6,000 (2,700)

BASIC $ 3,500 (1,650) $ 7,000 (3,700)

*Includes deductible and coinsurance only


Prescription Drug Coverage for all Plans

• Formulary Drug - 80% of Allowed Charge after Deductible Amount Nonformulary Drug - 50% of Allowed Chare after Deductible Amount - Prescription Medications or Drugs and nonprescription

diabetes supplies are subject to a dispensing limit of a 100-day supply.


Wellness Services

• Well Child Care – To members 6th birthday– 100% of Allowed Charge

• Deductible Amount is waived

– 7 visits for Members from birth through 12 months– 4 visits for Members from 13 months through

35 months– 1 visit per Benefit Period for Members 36 months

through 72 months


Preventive Screening Services for Members age 6 and older

– 100% of Allowed Charge subject to a Maximum Benefit Allowance of 1 examination per Member per Benefit Period

– Deductible Amount is waived• Benefits Include:

– One routine physical examination per Member (Office Visit)• All CDC Approved Immunizations will be paid at 100%• Shingles (Zostavax) 60+• HPV (Human Papillomavirus) 9-26 (male & female)


Preventive Continued

• Mammogram– 100% of allowed charge – Deductible is waived and benefits are as follows:

• One service for Members between the ages of 35 and 40• One service per year for Members age 40 and older

• Routine Pap Smear• Fecal Occult Blood Testing – Subject to a Maximum Benefit Allowance

of 1 test per benefit period for ages 50+.• Colonoscopy - Subject to a Maximum Benefit Allowance of 1 test

every 10 years for ages 50-75.• Sigmoidoscopy - Subject to a Maximum Benefit Allowance of 1 test

every 5 years for ages 50-75.


Preventive Screenings cont’d

• Tobacco Cessation Services– 100% of Allowed Charge

• Prescription Non-Nicotine Replacement Therapy.• Payable Over-the-Counter(OTC) Nicotine Replacement Therapy(nicotine

lozenges, patches, gum).• Prescription Nicotine Replacement Therapy(nicotine nasal spray, inhaler,

patches).• Related Office Visit.Benefits are subject to a Maximum Benefit Allowance of 2 quit attempt

cycles per Member per Benefit Period. A quit attempt cycle includes 4 counseling visits and/or a 3-month supply of nicotine or non-nicotine replacement therapy.


Health Savings AccountBenefits

• Enroll in High Deductible Health Plan

• Enroll in the HSA

• Use HSA to pay for out-of-pocket/deductible expenses

• Now covered by HDHP• Save your HSA funds!

What is a Health Savings Account?

• A Health Savings Account allows you to set aside funds to pay for qualified medical expenses for you, your dependents or your spouse.

• Think of it as a Medical IRA!

Qualified Expenses• Medical• Dental• Vision• Chiropractor• Prescriptions• Some Over-the-Counter (OTC)*

Not all eligible expenses go toward your HDHP deductible Visit www.discoverybenefits.com for more information Save your receipts

May Require a Rx

http://www.discoverybenefits.com/

H.S.A Contributions• NDPERS Monthly Employer Contribution• Participant E-Contribute• Send a check to fund your account at any time• 2012 Contribution limits:

Coverage 2012 NDPERS 2012 Contribution

Single $3,100 $658.08 ($2441.92)

Family $6,250 $1592.88 ($4657.12)

55+ $1,000 Extra contribution

Eligibility• Must be covered by a HDHP to participate

• If you cease participation in HDHP, can no longer contribute to H.S.A, but can spend down balance

• You are not eligible if:– covered by any other insurance– you/spouse participate in a traditional FSA– receiving Medicare/Tricare benefits

Eligibility

• FSA / Grace Period Rules• FSA must have a zero balance on 12/31/11 in

order to enroll in the H.S.A effective 1/1/12

• If the FSA has a remaining balance on 1/1/12, employee is not eligible to enroll in an H.S.A until April 1st, 2012• (first of the month following 2 ½ month flexible spending account

grace period)

HERE is the Challenge

• Flex program administration is decentralized in North Dakota

• Consequently:– PERS will need to send a list of all enrollees to a

designated representative for Flex Medical Spending Account

– Designated representative will need to determine if the member has a balance in Flex account on January 1.

– Designated representative will need to communicate the names to PERS


• PERS will need to direct vendor to remove enrollment of member in HSA

• Member will need to be informed and they will need to enroll again

• PERS will pay into account with first payment after becoming eligible an amount equal to what would have been paid since January

• Member will remain enrolled in HDHP


• This will be a manual process since at this time there is no way to automate

• Tax consequences to member if enrolled when not eligible

Requested Action

• That a designated representative be assigned for each Flex program that PERS can coordinate with to implement and for ongoing administration.

• Request designation by October 15.

Tentative Rollout Schedule• NDPERS Announcement on October Site meetings between 10/10 – 10/28

– Tentative Dates/Times/Locations – • Fargo 10/10 @ 10:00 AM and 2:00 PM• Dickinson – 10/11 @ 8:30 AM• Williston – 10/11 @ 3:00 PM• Wahpeton 10/13 @ 9:00 AM• Mayville 10/13 @ 3:00 PM• Minot – 10/18 @ 9:00 AM• Bismarck - 10/18 @ 1:00 and 4:00 PM• Jamestown – 10/20 @ 9:00 AM• Valley City – 10/20 @ 3:00 PM• Grand Forks – 10/25 @ 8:30 AM• Grafton – 10/25 @ 1:30 PM• Grand Forks – 10/26 @ 1 PM• Devils Lake – 10/27 @ 9:00 AM• Bottineau – 10/27 @ 1:30 PM

– WebEx – Two per week (Monday’s and Wednesday’s) from 10/10 – 10/28• Finalize Dates/Times

PERS COMPANION PLAN AND DEFINED CONTRIBUTION TRANSFER

What TIAA/CREF Offered NDPERS

–A comprehensive investment menu of mutual funds –Lower administrative fees –Expanded, third-party investment advice from TIAA-CREF and

more days of counseling–Expanded brokerage services–Custom retirement plan website: www.tiaa-cref.org/ndpers When it comes to helping you prepare for retirement,

partnering with TIAA-CREF has its advantages. In fact, in a recent survey of 30 companies, TIAA-CREF participants had the highest average retirement account balances.*

* Source: LIMRA, Not-for-Profit Market Survey, second-quarter 2011 results. Average assets per participant based on full-service business. Please note average retirement account balances are not a measure of performance of TIAA-CREF retirement offerings.

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Your New NDPERS Retirement Plans’ Investment Menu

| 25Investing involves risk, including possible loss of principal.

Investment Options Tier 1 (Target Date Funds)

Asset Class Fund

Retirement Income TIAA-CREF Lifecycle Ret Inc

Target Date TIAA-CREF Lifecycle 2010










Investment Options Tier 3 (Core Active Funds)

Asset Class Fund

Inflation-Protected Bond PIMCO Real Return Admin

Intermediate-Term Bond PIMCO Total Return Admin

Large Growth Franklin Growth Adv

Moderate Allocation T. Rowe Price Capital Appreciation Adv

High Yield Bond Prudential High-Yield Z

Large Growth Wells Fargo Advantage Growth Adm

Mid-Cap Blend ASTON/Fairpointe Mid Cap I

Large Value Hartford Dividend & Growth R5

Large Blend Nuveen Tradewinds Value Opportunities I

Mid-Cap Growth Prudential Jennison Mid Cap Growth Z

Large Value T. Rowe Price Equity Income

Mid-Cap Value RidgeWorth Mid-Cap Value Equity ISmall Growth Brown Capital Mgmt Small Co InvReal Estate Cohen & Steers Realty SharesWorld Stock Mutual Global Discovery Z

Diversified Emerging Mkts Oppenheimer Developing Markets YSmall Blend Parnassus Small-CapSmall Value Allianz NFJ Small Cap Value AdminWorld Bond Templeton Global Bond Adv

Investment Options Tier 2 (Core Index Funds)

Asset Class Fund

Mid-Cap Blend Columbia Mid Cap Index A

Large Blend Vanguard 500 Index Signal

Foreign Large BlendVanguard Total Intl Stock Index

Inv

Advice and Guidance

Personalized and ObjectiveFund-Level Advice*

Our advice offers fund-specific recommendations — at no added cost to you.

Advice sessions answer questions like:

1.How much do I need to save now? 2.How should I allocate my portfolio?3.When can I retire?

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* Advice provided through Ibbotson Associates, Inc. Please note: TIAA-CREF does not provide advice on brokerage accumulations.

Self-Directed Brokerage Services

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Easy to set up

Access to more than 3,500 mutual funds from hundreds of investment companies

Buy, sell and transfer funds either online or through a toll-free number

Minimum $500 investment.

The annual Brokerage Account Maintenance Fee will be waived for NDPERS participants

Brokerage Services fees for transactions may apply (see below)

*Ongoing Transaction Fee waived when an Automatic Investment Plan is established.

Type Initial Cost Short-term Redemption

Short Term Redemption/Fund Co. Fee

Transaction Fee Funds

$35 Buy or Sell* N/AVaries by Fund - Consult Prospectus

Non-Transaction Fee Funds

$0 Buy or Sell $50.00 Varies by Fund - Consult Prospectus

Load FundsSales Charge/Varies by Fund – Consult Prospectus

Dependent on Fund Family

Varies by Fund - Consult Prospectus

Accessing My Account

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Go to www.tiaa-cref.org/ndpers

Log into your account using your User ID and Password. If you forgot your User ID and/or Password, just follow the instructions to retrieve it.

From the site, you can:

-Get information on the new investment choices

-Make account transfers and changes

-Access retirement planning tools and calculators

-Review your last Quarterly Statement.

Key Communication Dates

Date CommunicationSeptember 6 Announcement Letter

September 19 Transition Guide Mailing

September 21 Custom Retirement Website goes Live

October 1 Welcome Kits Mailed

October 3 Webinars Begin

October 3 Group Meeting Reminder Mailing (10th – 19th)

October 4 Group Meetings Start

October 5 Individual Financial Counseling Sessions Start

October 24 Individual Financial Counseling Session Reminder Mailing

December 1 Final Reminder Mailing (Plan Changes)

January 3 Quarterly Statement

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Next Steps and Important Dates to Remember

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On November 1, 2011 your assets in and contributions to the NDPERS 401(a) and 457(b) retirement plans will be automatically redirected to an age-appropriate TIAA-CREF Lifecycle Mutual Fund. If you are satisfied with how your investments will be reallocated, there’s no need to take any action other than filling out a beneficiary form if you are in the 457 Companion Plan.To set up an allocation different than the age-appropriate mix that will be effective on November 1, you will need to take action between October 1 and October 31. In the next section, we provide an overview on how to make these changes.

Before October 1 A new retirement plan account is opened for all participants at TIAA-CREF

Next Steps and Important Dates to Remember

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Between October 1 – October 31 Review the new investment menu and the reallocation instructions

(www.tiaa-cref.org/ndpers) Allocation changes can be made online or by calling TIAA-CREF. Change must be

made by October 31. Set up a one-on-one financial counseling session with an individual counselor If you are interested in investing in a different option, Self Directed-Brokerage may

be the option for you. The Blackout Period will start October 28, 2011 and end on or before November

15, 2011

http://www.tiaa-cref.org/n

Member Statement

• Member statements were mailed to all PERS members off of PERSLink in the last 4 weeks

• Members can see detailed statements on - line

Open Enrollment

• PERS open enrollment coming soon.– Health Plan – Flex Elections– Voluntary Program enrollment

THANK YOU FOR YOUR TIME AND ALL YOUR HELP

pers update ndus hr council tuesday september 13, 2011

Documents

benefit period deductible

allowed charge deductible

maximum benefit allowance

allowed charge subject

members age

counseling visits andor

coinsurance plan

allowed chare